The court has found that the majority of the arbitral tribunal was wrong to decline jurisdiction over a claim for equitable damages for breach of an obligation to arbitrate, in the latest decision in the long-running West Tankers dispute: West Tankers Inc v Allianz SPA & Generali Assicurazione Generali SPA [2012] EWHC 854 (Comm). The judgment leaves scope for a tribunal to award damages for a breach of an arbitration clause, or to grant an indemnity against any award made in parallel proceedings which exceeds the innocent party’s liability as established in the arbitration.
Subject to any appeal (for which permission has been granted) this case illustrates that a party facing parallel proceedings in breach of an arbitration agreement should consider amending its claim to include a claim for damages and/or a declaration for an indemnity as soon as the respondent brings parallel proceedings. Click here to read more about the decision on our arbitration blog.
